Cost of living in Singapore

[LITTLEREDDOT]

Banks to start charging customers for Singdollar cheques by Nov 1​

The move comes amid falling cheque usage in Singapore and, in turn, higher costs of handling cheques. PHOTO: ST FILE

Alyssa Woo
Assistant Business Editor

JUL 28, 2023

SINGAPORE - Seven major banks in Singapore – Citibank, DBS Bank, HSBC, Maybank, OCBC Bank, Standard Chartered Bank and UOB – will begin charging individuals for Singapore dollar-denominated cheques by Nov 1.
Other banks will do so by July 1, 2024.
Charges for US dollar-denominated cheques will also be implemented in phases, though a DBS spokesman said on Friday that the bank will start implementing charges for SGD-denominated and local USD-denominated cheques for both individuals and companies from Nov 1.
This comes amid falling cheque usage in Singapore and, in turn, higher costs of handling cheques, noted the Monetary Authority of Singapore (MAS) and the Association of Banks in Singapore (ABS) on Friday.
Cheque transaction volumes here have fallen sharply – by almost 70 per cent in the past six years, from 61 million in 2016 to less than 19 million in 2022.
Correspondingly, the average cost of clearing a cheque has quadrupled since 2016 to 40 cents in 2021. If cheque volumes continue to fall further, that cost is projected to increase to up to $6 by 2025.
It is fast becoming unsustainable for banks to continue absorbing these costs, said MAS and ABS.

Cheque processing costs include cheque clearing costs associated with the cheque truncation system (CTS) and other bank operating costs.
The new charges will vary according to the individual banks.
While MAS intends to eliminate corporate cheques by end-2025, individuals can continue using cheques and cashier orders for the foreseeable future, or at least until the CTS – essentially a cheque clearing system – is completely terminated.

This is to give them time to familiarise themselves with alternative payment methods, including PayNow, Giro and e-wallets, and make a full transition away from cheques and cashier orders.
MAS and ABS will further help to develop appropriate initiatives to assist remaining individual cheque users in their transition to alternative payment methods.
Banks are doing their part too.
OCBC already has in place at all of its 30 personal banking branches the Digital Silvers Programme, which is focused on helping those aged 60 and above learn how to bank and pay digitally. The current programme curriculum, which includes Fast and PayNow, will be updated in early August to include Giro.
DBS has also been working with the Infocomm Media Development Authority since November 2022 to organise digital literacy workshops for the community, with the aim of reaching out to 100,000 Singaporeans and residents. To date, about 16,000 people have participated in these workshops.
There will be another public consultation exercise in 2024 to set out the initiatives and timeline to eliminate individual cheques and terminate the CTS.
By the time these are implemented, individuals can use the electronic deferred payment (EDP) solution – to be launched by end-2025 – to make deferred payment or issue a cashier’s order without the need for cheques. EDP will leverage existing payment solutions like PayNow and Giro.
The first round of public consultation, which was carried out last November and December, found that individuals who were still using cheques did so mainly for property-related transactions.
They were also willing to pay for cheque-processing costs, as such payments tend to be occasional and less frequent.

Individuals whom The Straits Times spoke to said writing cheques offers them an added sense of security.
Public service officer Jackson Wu, 49, writes cheques for routine instalment payments such as housing and vehicle loans, and does not use e-payment options such as PayLah! and PayNow or ATM Nets contactless payment because he does not want to link transactions to his bank accounts.
Mr Wu said: “While such transactions are legitimate, I think there is a chance for the transaction details and e-signature to be hijacked by hackers.”
For other cheque users, it is the difficulty of remembering login details for online payment systems.
“Generally, older folks don’t really remember their logins for the apps. For example, just yesterday, my client couldn’t set up PayNow via his NRIC because he forgot his login details,” said insurance agent Ng Wen Jie, 33, who also wrote a cheque when paying for his house. “Many banks allow Singpass login, but a couple do not.”
The overall number of individuals who use cheques is low, according to the banks.
For Citi Singapore’s retail banking segment, more than 95 per cent of payments are made through digital channels, with cheques accounting for less than 2 per cent of transactions.
Said its spokesman: “Even this number is decreasing steadily by about 20 per cent year to date. Correspondingly, we receive less than 100 requests for cheque book replenishments every month.”
Mr Sunny Quek, OCBC’s head of global consumer financial services, said 97 per cent of the bank’s consumer financial transactions were performed digitally in the first half of 2023.
The number of its digital app users has almost doubled over the last five years.
At DBS, cheque usage among its retail and corporate customers continues to fall by up to 25 per cent every year. DBS and POSB retail customers prefer to make e-payments, with $70 out of every $100 spent paid for digitally.
Ms Adeline Kim, Visa’s country manager for Singapore and Brunei, also sees increasing use of digital payments. She noted that more than 95 per cent of Singapore consumers prefer credit or debit cards as their primary payment method, “a consistent trend across generations from baby boomers to Generation Z”.

Hard stop for corporate cheques​

Like individuals, companies will be charged for SGD-denominated cheques by Nov 1, with charges for USD-denominated cheques being implemented in phases.
This change will make cheque clearing costs more uniform across the banks, as currently the various banks have different charges in place for different denominations.
Banks will also stop issuing cheque books to corporate customers some time before the implementation of the EDP solution, and stop processing all corporate cheques by Jan 1, 2026.

 

[LITTLEREDDOT]

Singapore, Asia face food inflation risks as price of rice soars to 15-year high​

The price of rice has risen 20 per cent in the past month alone, since India banned exports of its non-basmati rice on July 20. PHOTO: ST FILE

Angela Tan
Senior Correspondent

AUG 21, 2023

SINGAPORE - Rising global prices of rice and its substitutes could drive food inflation higher as early as the end of 2023 in Singapore and most of Asia, which consumes 90 per cent of the world’s rice, economists warned.
At US$648 (S$880) a tonne, Thai white 5 per cent broken rice, an Asian benchmark, is at its most expensive since October 2008, according to data from the Thai Rice Exporters Association.
The price of the common Asian staple has risen 20 per cent in the past month alone, after India banned exports of its non-basmati rice on July 20.
“This means the current rise in food prices, should it sustain, would be reflected in higher Asia food inflation only towards the end of the fourth quarter or early next year,” Ms Sonal Varma, Nomura’s chief economist of India and Asia ex-Japan, told The Straits Times.
BMI, a Fitch Solutions company, said corn and wheat prices have also risen higher in the aftermath of the expiration of the Black Sea Grain Initiative on July 17, adding that this is fuelling further upside pressure on the prices of rice and its substitutes.
As a net rice importer, Singapore could face some pressure as non-basmati rice from India accounted for 17 per cent of the Republic’s rice imports in 2022.
Ms Varma said that while food accounts for a small share in Singapore’s consumer price index (CPI), rising global food prices would have some spillover on the country’s CPI inflation as Singapore imports more than 90 per cent of the food it consumes.

The weighting of food in Singapore’s CPI is 21.1 per cent, of which 6.82 per cent is food, and 14.28 per cent is food serving services. Rice has a weighting of 0.2 per cent in Singapore’s CPI basket.
For now, the higher global food prices have yet to impact most countries’ inflation data due to a lag as a result of government interventions such as food subsidies and the release of buffer stocks.
“The lags differ across countries, but on average we find a six-month lag between global food price inflation and CPI food inflation in Asia, with lags ranging from three months in Indonesia to as long as nine months in South Korea,” Ms Varma said.

Maybank economist Chua Hak Bin recently raised his 2024 inflation forecast for Singapore to reflect the hike in energy and food prices. He also factored in the impact from the goods and services tax hike and the higher carbon taxes from Jan 1, 2024.
Associate Professor in Practice Terence Ho, from the Lee Kuan Yew School of Public Policy at the National University of Singapore, noted that while the prices of certain food items including rice might be rising, Singapore’s overall and core inflation were moderating from their peaks earlier in 2023.
A recent study by the school showed that while food prices have been steadily rising in Singapore since 2007, they tend to be a lot more stable compared with global food prices.
It said Singapore’s growing economy made it better at insulating itself from global food crises.
“Singapore’s growing economy along with a relatively stable currency may have contributed to higher purchasing power in the world market, thereby providing a greater buffer towards global food price shocks,” the study said.

Singapore also maintains stockpiles of essential food items, including rice. For instance, the Rice Stockpile Scheme helps to ensure an adequate supply of rice and maintain price stability.
“These stockpiles are regularly reviewed to make sure they are sufficient to address emerging risks,” Prof Ho said.
The latest ban by India – the world’s largest rice exporter, accounting for more than 40 per cent of rice trade in 2022 – is adding further stress to a market grappling with tight supplies caused by erratic weather conditions due to the El Nino phenomenon, which have pushed rice export prices up 6 per cent since the end of 2022.
BMI estimated that India’s ban would remove around 8 per cent of expected rice trade volumes.
Already, export prices of rice from alternative suppliers like Thailand and Vietnam – the second- and third-largest rice exporters after India – have gone up.
The impact of El Nino may not be limited to rice. Palm oil output from Indonesia – the world’s largest exporter of palm oil – could be threatened too, although the impact is likely to be visible only in 2024, Ms Varma said.
Globally, Asian economies are highly exposed to rising food prices. Apart from Australia, India and Thailand, most in the region are net food importers.
Ms Varma said the Philippines appears the most vulnerable, with food accounting for nearly 35 per cent of its CPI basket and food imports 2.7 per cent of its gross domestic product.

 

[LITTLEREDDOT]

S’pore water price to rise by 50 cents per cubic m by 2025; lower-, middle-income families to get help​

Most households will fork out an additional $4 to $9, excluding GST, for their monthly water bills by 2025. ST PHOTO: BRIAN TEO

Shabana Begum

Sep 27, 2023

SINGAPORE – Water will soon cost consumers an additional 50 cents per cubic m, starting with a 20-cent increase in April 2024 and a 30-cent rise in April 2025.
This means that most households will fork out an additional $4 to $9, excluding GST, for their monthly water bills by 2025, said national water agency PUB on Wednesday.
In 2020, the average monthly consumption of water was 15 cubic m for condominiums and 16.2 cubic m for HDB flats.
Lower- and middle-income households will get help to offset some of the price increase. Deputy Prime Minister and Finance Minister Lawrence Wong will announce cost-of-living support measures to provide more relief for Singaporean households on Thursday.
The last water price hike of 30 per cent happened in 2017. The upcoming 50-cent rise - bringing the cost of one cubic metre - which is 1,000 litres - of water to $3.24. This is an 18 per cent increase.
The price hike between 1997 and 2000 saw water prices rising by 120 per cent for households.
The upcoming increase comes amid rising living costs, GST hikes and higher transport fares, and the water agency did not take the decision lightly, said a PUB spokesman.

“The water price increase is not popular, but necessary,” the spokesman said.
“We understand that it can draw strong reactions amid the other cost of living pressures. That’s something we are very mindful of, so PUB does not take this decision lightly.”
It has been increasingly more expensive to produce and supply water, PUB said, and there is a need to invest more in local water infrastructure - especially in weather-resilient Newater and desalinated water - to brace for drier days ahead due to climate change.


And Singapore’s water demand, which is currently at about 1.95 million cubic m – or 440 million gallons – each day, is expected to almost double by 2065.

Singapore has four sources of water: imports from Malaysia, water from local catchments, Newater and desalinated seawater.
Pressures from higher energy prices and construction costs have contributed to PUB’s annual operating costs exceeding its revenue in the 2021 and 2022 financial years.
In 2019 and 2020, PUB saw a slight net positive in revenue, owing to the 2017 water price hike.
Electricity tariffs have risen by about 37 per cent, while construction costs have gone up by 35 per cent, with higher increases for specialised works such as tunnelling and pipeline projects through highly urbanised areas.

Due to inflationary pressures and supply chain disruptions, the cost of essential chemicals to treat used water, for example, has risen by about 33 per cent. Higher manpower costs have driven maintenance expenses by 18 per cent.
These external cost drivers have worsened the operating deficit significantly in the latest fiscal year, said PUB.
Its spokesman said: “If we were to defer the price increase any further… essentially we would have an even bigger price increase moving forward.”
Rising operational costs and inflation are not affecting Singapore alone.
Between July 2022 and July 2023, the average increase in water-related bills worldwide was 8.2 per cent, the second-highest rise recorded by the Global Water Intelligence, a leading publisher for the international water scene.
By April 2025, three in four households will see an increase of less than $10 in their monthly water bills, with tenants of one to two-room flats paying about $4 more.

Water bills account for less than 2 per cent of an average household’s expenditure.
The majority of households use less than 40 cubic m of water every month. But about 4 per cent of homes exceed 40 cubic m, and they will be charged a higher rate of 70 cents more per cubic m - or a total of $4.39, to discourage water wastage.
As for businesses, about 75 per cent of them will fork out less than $25 more every month with the price hike.
Three in four hawkers will also pay less than $15 more each month. Businesses’ utility bills make up less than 5 per cent of their business costs.
However, businesses will be reminded not to engage in profiteering from the water price hike and relevant government agencies will monitor food prices set by hawker centres and coffee shops, added PUB.

The price hike will be phased over two years to give households and businesses more time to adjust and adopt water conservation measures.
The agency urged businesses to tap the recently enhanced Water Efficiency Fund to set up recycling and water-efficient technologies so that their water usage and bills shrink.
One- to three-room households can redeem $50 in e-vouchers under the Climate Friendly Households Programme to buy water-efficient shower fittings that can help to save water and reduce their bills.

The spokesman said PUB will derive more revenue from the water price increase, and the additional revenue is expected to cover about one-third of its investments in the next few years.
PUB may expand its Newater capacity because there will be more used water to treat as demand grows, and it is more cost-effective than desalination.
By 2025, the price of every cubic m of Newater will also increase by 17 cents to $2.50.
Newater is mainly supplied to wafer fabrication plants, industrial estates and commercial buildings, and less so to households.
By 2065, two-thirds of water demand is expected to come from non-domestic sectors.

 

[LITTLEREDDOT]

Electricity and gas tariffs to increase in fourth quarter due to higher costs​

Electricity tariffs will go up by an average of 3.7 per cent, or 0.98 cent per kilowatt, before GST, compared with the current quarter. ST PHOTO: CHONG JUN LIANG

Chin Hui Shan

Sep 29, 2023

SINGAPORE – Gas and electricity prices will go up for the next three months due to higher fuel and energy costs.
The electricity tariff will go up by an average of 3.7 per cent, or 0.98 cent per kilowatt (kwh), before GST, compared with the current quarter, said SP Group on Friday.
For households, between Oct 1 and Dec 31, the electricity tariff will increase from 27.74 cents per kwh in the current quarter to 28.70 cents per kwh, excluding the goods and services tax (GST).
Including GST, the rate for the quarter is 31.00 cents per kwh.
The average monthly electricity bill for families living in four-room Housing Board flats will increase by $3.57 before GST, said SP Group.
This is due to higher energy costs compared with the previous quarter, the group added.
The electricity tariff is calculated from four components, including energy costs that reflect the cost of imported natural gas, and the cost of operating the power stations.

SP Group said it reviews electricity tariffs every quarter, based on guidelines set by the Energy Market Authority (EMA).
Meanwhile, the gas tariff for households will go up by 0.51 cent per kwh before GST, said City Energy.
Excluding GST, the rate will increase from 21.91 cents per kwh to 22.42 cents per kwh for the period from Oct 1 to Dec 31.

With GST, the rate is 24.21 cents per kwh.
This is due to an increase in fuel costs compared with the previous quarter, said City Energy.
The revised gas tariffs have been approved by EMA, which also regulates the gas industry.

These increases follow a water price hike announced on Wednesday, which will see the price of water in Singapore rise by 50 cents per cubic m by April 2025, and amid rising living costs, an increase in GST this year and planned increase in transport fares.
On Thursday, Deputy Prime Minister and Finance Minister Lawrence Wong announced a $1.1 billion Cost-of-Living Support Package to provide relief for all Singaporean households, with more support for lower- to middle-income families. They build on the measures announced at Budget 2023.
As part of the package, some 2.5 million adult Singaporeans will receive an additional cash payout of up to $200 in December, and every Singaporean household will receive an extra $200 in Community Development Council vouchers in 2024 to help with the rising cost of living.
Also, some 950,000 Singaporean HDB households will receive an additional one-off 0.5 month service and conservancy charges rebate in January 2024, together with the regular S&CC rebates.
There will also be additional subsidies of about $300 million in 2024 to cover the deferred fare adjustment quantum of 15.6 cent that will be carried over to future fare review exercises, as announced by the Public Transport Council on Sept 18.
The additional subsidies will help to moderate the increase in fares and pay for the higher costs of providing public transport services due to the continued increase in energy prices in 2022, core inflation and strong wage growth, the Ministry of Finance said previously.

 

[LITTLEREDDOT]

Family of four needs $6,426 a month for basic standard of living in S'pore, says study​

The average wage per working parent needed to meet the basic standards of living is $2,906 per month. PHOTO: ST FILE

Tham Yuen-C
Senior Political Correspondent

PUBLISHED

OCT 8, 2021, 10:52 PM SGT

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SINGAPORE - A family of four, with parents, a pre-teen and a teenager, needs at least $6,426 a month to afford a basic standard of living, a study on household budgets has found.
A family of two, with a single parent and a toddler or pre-schooler, meanwhile, needs $3,218 a month.
But a substantial and concerning proportion of working households in Singapore - about 30 per cent - do not earn enough to meet these needs.
The study was done by National University of Singapore Lee Kuan Yew School of Public Policy (LKYSPP) and Nanyang Technological University (NTU).
Its findings were released in the report Minimum Income Standards For Households In Singapore (2021), and were disputed by the Ministry of Finance (MOF) in a statement on Friday (Oct 8).
LKYSPP senior research fellow Ng Kok Hoe and NTU head of sociology Teo You Yenn, two of the study's six authors, said that the study on how much people need to achieve a basic standard of living in Singapore has exposed some gaps in society.
Using the figures as a benchmark and comparing them against existing income data as well as public schemes show that some segments of the population are not able to meet their basic needs, added Dr Ng at an event presenting the study's findings held over videoconferencing platform Zoom.

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But the MOF said "the conclusions may not be an accurate reflection of basic needs largely due to assumptions used", pointing to the limitations of the Minimum Income Standards (MIS) approach used.
The study defined standard of living as one in which Singaporeans can afford housing, food and clothing, and also have opportunities for education, employment and work-life balance, as well as access to healthcare.
It should also enable a sense of belonging, respect, security and independence and afford the choice to participate in social activities and cultural and religious practices.


Based on this definition that emerged from focus group discussions, researchers then convened more focus groups for people to come up with lists of items people from different stages of life will need.
The researchers went to shops or websites mentioned by the participants to find out the real price of each item. These lists were then combined to form the budget of various configurations of households.
Dr Ng said a critical pillar of the MIS approach is to ensure that each focus group is economically diverse, so the budgets resulting from the discussions are not just for particular segments, say the rich or poor. Instead, these budgets apply universally for all Singaporeans, he added.
A total of 196 participants of different genders, ethnicity and socio-economic backgrounds took part in 24 focus group discussions.
This method differs from other methods of assessing needs, which typically depend on experts and household expenditure.
The MOF said the budgets arising from the study were in excess of the basic needs for an average household.
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The LKYSPP-NTU team had done a previous study in 2019, focusing on elderly households.
This time, it covered younger households, including those with a single parent with one child aged two to six, and those with parents with two children, one aged seven to 12 and the other aged 13 to 18.
It also updated its findings on households with a single elderly person, by accounting for inflation, among other things.
Adopting the household budgets as benchmarks and comparing them with data on actual income from work, the study found that after taking major taxes and benefits into account, workers earning the equivalent of the median wage in 2020, which stood at $4,534, will make more than enough to cover the needs of the single-parent and two-parent households.
Based on the study, the average wage per working parent needed to meet the basic standards of living is $2,906 per month.
The study's authors suggested that this can be a starting point for a socially acceptable living wage for Singapore, which will allow people to meet their basic needs.
However, the study found that some groups were at risk of falling below this minimum. The youngest workers, as well as those without tertiary education and those in certain low-wage sectors, would fall short if they belonged to these single-parent and two-parent households.
For example, cleaners and labourers take home a median monthly income of only $1,535, while salespeople make $2,345.

For elderly households with one person, basic needs will cost $1,421 a month. PHOTO: ST FILE
The Progressive Wage Model (PWM) and Workfare Income Supplement were also inadequate in helping to make up the difference, with wage levels under these schemes coming up to about 60 per cent of what the single-parent and two-parent households need.
"Clearly, interventions currently available are not enough for working households with children," said Dr Ng.
He added that if such households depend on employment in PWM sectors such as cleaning as their only source of income, they are likely to experience significant financial strain, calling for wage intervention to go further than the PWM currently does.
For elderly households with one person, basic needs will cost $1,421 a month.
Income data suggests that older workers would have just enough to cover this. Workers who are 60 years old and above make a median monthly wage of $2,330.
But elderly people depending on Central Provident Fund payouts may find themselves short, while those needing public assistance would be a long way from achieving a basic standard of living, the study found.
The CPF Basic Retirement Sum, which pays out $800 a month, covers only 56 per cent of what a single elderly person needs. The Silver Support Scheme covers only 11 per cent to 21 per cent, the study found.
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While the study offers a scientific benchmark for policymakers to refer to, it does not prescribe a way to help close the gap, said Dr Ng.
He suggested that there were two options, either rebalance the private and public provision of public services such as education and healthcare, or improve wage interventions such as PWM.
The study found that housing, healthcare, education and childcare accounted for a significant proportion of spending for all household types - 28 per cent of the budget for two-parent households, and 39 per cent for single-parent households.
More state funding for such public services, through universal subsidies or direct provision, would help lighten the financial burden on households, he noted.
"What we mustn't do is say we can't move on any of these fronts. If you don't move on any front then people will not have enough," he added.
The study's authors also said the MIS method of constructing household budgets, adopted by countries such as Britain, France, South Africa and Thailand, reflects the lived realities and ordinary habits of people and captures the values and principles that ordinary Singaporeans identify with.
For instance, participants agreed that money should be allocated for contributions at funeral wakes, or birthday presents, but rejected air-conditioners as a necessity.

Participants had agreed that landlines were not needed, since most people use their mobile phones nowadays. PHOTO: ST FILE
They also agreed that land lines were not needed, since most people use their mobile phones nowadays, and that taxi rides are a necessity a few times a week, though cars are not.
Associate Professor Teo said: "The spirit of this project is really about trying to capture how ordinary people think about the basic standard of living in a particular time and... many participants were very articulate in saying that it shouldn't just be about breathing and being alive.
"It's also about thriving, having respect and security and belonging."
The importance of this sense of belonging had come through especially strongly this time around, compared with the first study in 2019, as parents spoke about how children need to be able to do things other children do, so they feel they belong.
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That is why the household budgets also included money for them to join their friends at outings outside of school, she added.
Dr Ng said: "It was very meaningful... that people can agree what basic needs in society mean, that people from very different backgrounds agree that there is such a thing called basic needs, agree what it means and looks like...
'This should urge all of us to think about how in policymaking and public deliberation and thinking, we should bring people into it and not think that answers are best produced by narrow groups of elites."

 

[LITTLEREDDOT]

Family of four needs $6,426 a month for basic standard of living in S'pore, says study​

The average wage per working parent needed to meet the basic standards of living is $2,906 per month. PHOTO: ST FILE

Tham Yuen-C
Senior Political Correspondent

OCT 8, 2021

SINGAPORE - A family of four, with parents, a pre-teen and a teenager, needs at least $6,426 a month to afford a basic standard of living, a study on household budgets has found.
A family of two, with a single parent and a toddler or pre-schooler, meanwhile, needs $3,218 a month.
But a substantial and concerning proportion of working households in Singapore - about 30 per cent - do not earn enough to meet these needs.
The study was done by National University of Singapore Lee Kuan Yew School of Public Policy (LKYSPP) and Nanyang Technological University (NTU).
Its findings were released in the report Minimum Income Standards For Households In Singapore (2021), and were disputed by the Ministry of Finance (MOF) in a statement on Friday (Oct 8).
LKYSPP senior research fellow Ng Kok Hoe and NTU head of sociology Teo You Yenn, two of the study's six authors, said that the study on how much people need to achieve a basic standard of living in Singapore has exposed some gaps in society.
Using the figures as a benchmark and comparing them against existing income data as well as public schemes show that some segments of the population are not able to meet their basic needs, added Dr Ng at an event presenting the study's findings held over videoconferencing platform Zoom.

But the MOF said "the conclusions may not be an accurate reflection of basic needs largely due to assumptions used", pointing to the limitations of the Minimum Income Standards (MIS) approach used.
The study defined standard of living as one in which Singaporeans can afford housing, food and clothing, and also have opportunities for education, employment and work-life balance, as well as access to healthcare.
It should also enable a sense of belonging, respect, security and independence and afford the choice to participate in social activities and cultural and religious practices.

Based on this definition that emerged from focus group discussions, researchers then convened more focus groups for people to come up with lists of items people from different stages of life will need.
The researchers went to shops or websites mentioned by the participants to find out the real price of each item. These lists were then combined to form the budget of various configurations of households.
Dr Ng said a critical pillar of the MIS approach is to ensure that each focus group is economically diverse, so the budgets resulting from the discussions are not just for particular segments, say the rich or poor. Instead, these budgets apply universally for all Singaporeans, he added.
A total of 196 participants of different genders, ethnicity and socio-economic backgrounds took part in 24 focus group discussions.
This method differs from other methods of assessing needs, which typically depend on experts and household expenditure.
The MOF said the budgets arising from the study were in excess of the basic needs for an average household.

The LKYSPP-NTU team had done a previous study in 2019, focusing on elderly households.
This time, it covered younger households, including those with a single parent with one child aged two to six, and those with parents with two children, one aged seven to 12 and the other aged 13 to 18.
It also updated its findings on households with a single elderly person, by accounting for inflation, among other things.
Adopting the household budgets as benchmarks and comparing them with data on actual income from work, the study found that after taking major taxes and benefits into account, workers earning the equivalent of the median wage in 2020, which stood at $4,534, will make more than enough to cover the needs of the single-parent and two-parent households.
Based on the study, the average wage per working parent needed to meet the basic standards of living is $2,906 per month.
The study's authors suggested that this can be a starting point for a socially acceptable living wage for Singapore, which will allow people to meet their basic needs.
However, the study found that some groups were at risk of falling below this minimum. The youngest workers, as well as those without tertiary education and those in certain low-wage sectors, would fall short if they belonged to these single-parent and two-parent households.
For example, cleaners and labourers take home a median monthly income of only $1,535, while salespeople make $2,345.

For elderly households with one person, basic needs will cost $1,421 a month. PHOTO: ST FILE
The Progressive Wage Model (PWM) and Workfare Income Supplement were also inadequate in helping to make up the difference, with wage levels under these schemes coming up to about 60 per cent of what the single-parent and two-parent households need.
"Clearly, interventions currently available are not enough for working households with children," said Dr Ng.
He added that if such households depend on employment in PWM sectors such as cleaning as their only source of income, they are likely to experience significant financial strain, calling for wage intervention to go further than the PWM currently does.
For elderly households with one person, basic needs will cost $1,421 a month.
Income data suggests that older workers would have just enough to cover this. Workers who are 60 years old and above make a median monthly wage of $2,330.
But elderly people depending on Central Provident Fund payouts may find themselves short, while those needing public assistance would be a long way from achieving a basic standard of living, the study found.
The CPF Basic Retirement Sum, which pays out $800 a month, covers only 56 per cent of what a single elderly person needs. The Silver Support Scheme covers only 11 per cent to 21 per cent, the study found.

While the study offers a scientific benchmark for policymakers to refer to, it does not prescribe a way to help close the gap, said Dr Ng.
He suggested that there were two options, either rebalance the private and public provision of public services such as education and healthcare, or improve wage interventions such as PWM.
The study found that housing, healthcare, education and childcare accounted for a significant proportion of spending for all household types - 28 per cent of the budget for two-parent households, and 39 per cent for single-parent households.
More state funding for such public services, through universal subsidies or direct provision, would help lighten the financial burden on households, he noted.
"What we mustn't do is say we can't move on any of these fronts. If you don't move on any front then people will not have enough," he added.
The study's authors also said the MIS method of constructing household budgets, adopted by countries such as Britain, France, South Africa and Thailand, reflects the lived realities and ordinary habits of people and captures the values and principles that ordinary Singaporeans identify with.
For instance, participants agreed that money should be allocated for contributions at funeral wakes, or birthday presents, but rejected air-conditioners as a necessity.

Participants had agreed that landlines were not needed, since most people use their mobile phones nowadays. PHOTO: ST FILE
They also agreed that land lines were not needed, since most people use their mobile phones nowadays, and that taxi rides are a necessity a few times a week, though cars are not.
Associate Professor Teo said: "The spirit of this project is really about trying to capture how ordinary people think about the basic standard of living in a particular time and... many participants were very articulate in saying that it shouldn't just be about breathing and being alive.
"It's also about thriving, having respect and security and belonging."
The importance of this sense of belonging had come through especially strongly this time around, compared with the first study in 2019, as parents spoke about how children need to be able to do things other children do, so they feel they belong.

That is why the household budgets also included money for them to join their friends at outings outside of school, she added.
Dr Ng said: "It was very meaningful... that people can agree what basic needs in society mean, that people from very different backgrounds agree that there is such a thing called basic needs, agree what it means and looks like...
'This should urge all of us to think about how in policymaking and public deliberation and thinking, we should bring people into it and not think that answers are best produced by narrow groups of elites."

 

[LITTLEREDDOT]

Car COE premiums hit new highs, Open category rises to $144,640​

The COE premium for smaller cars set a new record of $105,000, while the COE premium for larger cars climbed to $140,889. PHOTO: ST FILE

Lee Nian Tjoe
Senior Transport Correspondent

SEP 20, 2023

SINGAPORE - The certificate of entitlement (COE) prices for cars and the Open category hit record highs on Wednesday, spurred by motor dealers rushing to meet year-end targets and take advantage of current tax rebates for electric cars.
The COE premium for cars with engines up to 1,600cc and 130bhp, as well as electric vehicles (EVs) up to 110 kilowatts, was 3.96 per cent higher at $105,000, up from $101,000 at the last tender exercise.
The previous high for smaller-car COE premiums was $103,721, set in the second tender exercise in April this year.
COE premiums for larger and more powerful cars as well as for the Open category set records for the fourth consecutive tender, both breaching the $140,000 mark for the first time.
At $140,889, the large-car COE premium was 4.45 per cent above the previous high of $134,889 set two weeks ago.
The premium for the Open category COE – which can be used for any vehicle type except motorcycles, but ends up being used mostly for bigger cars – also set an all-time high, at $144,640.
This was 5.58 per cent higher than the $137,000 record from the last tender exercise.

The commercial vehicle COE premium nudged up by 1.1 per cent to finish at $83,801, up from $82,889 before.
The COE premium for motorcycles was the only one that dipped. At $10,700, the price was 1.84 per cent lower than the $10,901 posted two weeks ago.
New highs have been set in all categories of COE in 2023, with the exception of motorcycles.

Some car brands had hosted road shows and dangled generous discounts to get more orders since the last tender.
There were 470 unsuccessful bids in total over the two car COE categories, slightly more than the 457 unsuccessful bids seen in the previous round.
A sizeable proportion of these bidders would return for the next tender to secure the needed COEs, suggesting that the upward pressure on prices is not expected to ease.
Mr Ng Choon Wee, group commercial director at Komoco Motors, attributed the high COE premiums to dealers who may be chasing after their year-end sales targets to qualify for incentives.
Calling the record COE premiums “absurd”, Mr Nicholas Wong, who is the general manager of Honda agent Kah Motor, said the surge is also driven by a sense of uncertainty for the new year.
Cars are expected to cost more in the new year. The EV Early Adoption Incentive, which gives rebates of up to $20,000 off vehicle taxes for EVs, ends on Dec 31 this year, and it is unclear what will happen to the scheme.
From Jan 1, 2024, the pollutant thresholds for private cars under the Vehicular Emissions Scheme (VES) will be tightened, though details of the revised VES have yet to be announced.
Motor traders say they are assuming that cars with pure internal combustion engines, as opposed to petrol-hybrids or EVs, will be downgraded to a less favourable band under the updated VES. This is expected to make such vehicles harder to sell in the new year as they would likely come with reduced rebates, or even incur higher penalties under the VES.
Associate Professor Walter Theseira, a transport economist at the Singapore University of Social Sciences, noted that the big swings in COE premiums, because of how the COE supply moves in 10-year cycles, is not ideal.
“A stable price would be better for the economy and better reflect the actual demand for car travel,” he said.
“Why should rental-fleet owners get a windfall just because they procured their fleet a few years ago?” he added, referring to how vehicles bought earlier when COE premiums were lower would be worth more at today’s COE prices.
Goldbell Corp board adviser Ng Lee Kwang said: “This COE situation is getting out of hand. This is not good for anybody.”
Mr Ng Lee Kwang, who also teaches transport topics as an adjunct lecturer at Nanyang Institute of Management, warns that cars registered with such expensive COEs would be difficult to sell in the used market when COE premiums eventually come down.
Mr Mohammad Iskandar Tobari, 51, is in no hurry to replace his five-year-old Subaru Forester, which he bought brand new.
The technician, whose 19-year-old daughter has just started taking driving lessons, said: “With car prices so high, I don’t know why she even wants to get a licence.”

 

[LITTLEREDDOT]

Open category COE hits $152,000, large car COE reaches another high​

This is the fifth consecutive time that the COE premium for the Open category has broken records. ST PHOTO: GIN TAY

Lee Nian Tjoe
Senior Transport Correspondent

OCT 4, 2023

SINGAPORE – The certificate of entitlement (COE) premium for the Open category breached the $150,000 mark at the latest tender exercise on Wednesday to close at a new all-time high of $152,000.
Industry observers said dealers may be trying to accumulate more Open category COEs to register cars in the remaining two months of the year before rebates are cut from 2024, as such certificates are valid for three months and transferrable.
In addition, dealers are racing to meet their year-end sales targets.
The premium for the Open Category – which can be used for any vehicle type except motorcycles, but ends up being used mostly for bigger cars – surged by 5.09 per cent over the $144,640 record set at the previous tender.
This is the fifth consecutive time this COE category has broken its record.
The COE premium for larger cars with engines above 1,600cc and 130bhp, or more powerful electric vehicles (EVs) above 110 kilowatts, climbed to $146,002, 3.63 per cent above the previous high of $140,889 set two weeks ago.
Smaller car COE ended at $104,000, which was 0.95 per cent lower than the $105,000 record posted at the previous tender.

The commercial vehicle COE premium also edged upwards by 2.5 per cent to finish at $85,900, from $83,801 before.
The COE premium for motorcycles closed at $10,856, 1.46 per cent above the $10,700 before.
The latest result seems to have startled even the motor dealers. When the tender closed at 4pm on Wednesday, the general manager at a dealership wondered out loud: “How is this possible?”

There were 1,039 bids in the COE category for smaller cars and less powerful EVs, compared to an average of less than 900 bids seen in the past four exercises.
Of that number, nearly 200 bids were entered in the final five minutes before the tender closed.

This is the first time since October 2021 that the number of bids broke into four-digits for any type of COE.
It follows an announcement by the Land Transport Authority (LTA) on Sept 29 that an additional 300 COEs for such cars will be reallocated equally between the two tender exercises in October.
The LTA said it was reallocating the COEs to help “meet anticipated demand from car buyers following the September announcement of changes to the Vehicular Emissions Scheme (VES)”.
With the revision, most hybrids and some of the more powerful EVs will receive $10,000 less in incentives from 2024.
Besides the reduced incentives, VES will also be made stricter with tightened pollutant thresholds.

At the same time, a new testing protocol to qualify cars for sale will kick in from Jan 1, 2024, and it is expected to give a less favourable rating than existing test standards.
Some cars that are currently in the neutral band and receive no incentives will be subjected to a penalty of $15,000 under the new regime.
Motor dealers said this is a significant enough reason to rush to sell affected cars within 2023.
If there was any surge in demand for hybrid cars to get the higher VES rebates before the new year, there was little sign of it at many showrooms, which have been quiet since the last tender exercise.

Mr Nicholas Wong, general manager of Honda agent Kah Motor, attributed the high number of bids recorded to fleet vehicle owners, adding that it would be “quite impossible” for dealers to collect so many orders since the last tender.
Wednesday’s tender is the second last exercise under the current three-month period. The LTA is expected to announce the COE supply for November to January in the coming weeks.
Motor dealers said that even if there would be more COEs available in the coming tenders, the combined pressure of revised VES incentives and the need to meet annual sales targets means it is unlikely that premiums will come down this year.
Ms Corinne Chua, Wearnes Automotive’s managing director for Volvo Cars, said that if motor dealers are anticipating a rush to get the higher incentives before the new year, the COE premium may hit “$160,000 or more.”

 

[LITTLEREDDOT]

Forum: More help needed for lower-income families affected by rising prices​

SEP 27, 2023

I understand that this year’s 7 per cent fare hike for bus and train rides is necessary to reflect the rising operating costs incurred by the providers of such essential public services.
Likewise, Singapore Post’s increase of 20 cents to mail a basic letter with effect from Oct 9 is necessary to recover rising costs.
On Jan 1, 2024, the goods and services tax (GST) will increase by 1 percentage point to 9 per cent, primarily to defray ballooning healthcare expenditure.
Singaporeans generally accept and trust that the Government will always act fairly in their best interests.
However, as most Singaporeans continue to struggle and cope with the higher cost of living, one wonders if the rising prices of goods and services might trap us in a vicious circle of unending price increases.
The transport fare and GST increases are likely to trickle down into higher operating costs for all businesses, including hawkers and coffee shop operators, who will then be compelled to pass on the incremental costs by raising their prices to remain profitable and survive.
When will this increasing price spiral end?

It is a sad truth that inflation unfairly hits the low-income families hardest, forcing them to endure much hardship and to make many sacrifices.
Meanwhile, the wealthy are probably less affected by inflation and perhaps even benefit from value appreciation of their properties and assets, resulting in a widening wealth gap and greater social inequality.
Although the Government has been rolling out support measures to help low-income families, we should be mindful that they are still most vulnerable, especially the children who might be deprived of some development opportunities as these families scrimp to stay afloat.
Life can become challenging and stressful in an inflationary environment. With reduced real income and purchasing power, some low-income families are prone to becoming dysfunctional, resulting in domestic conflict and disharmony.
In this context, there is the real danger that the children will fall further behind those from wealthy families.
Hopefully, our policy and decision makers, including political leaders, will bear in mind the struggles of those most adversely impacted by high inflation and find more ways to help them.

Ang Ah Lay

 

[LITTLEREDDOT]

Forum: Consequences of having sky-high COE prices​

Oct 11, 2023

Surely, the Government must be watching with concern the sharp rise in certificate of entitlement (COE) premiums in the past few months.
No doubt it is the Government’s policy to limit the number of COEs to control the vehicle population. The high COE premiums are unavoidable due to the limited number of COEs available for bidding each month.
The consequences of higher COE premiums are:
- The cost of living will rise, causing a ripple effect on the economy and affecting everyone;
- Push factors are created for those in the middle-income groups to leave Singapore for good. This will cause a brain drain in our workforce at the professional, managerial, executive and technical (PMET) levels.
Some Singaporeans will want the Government to have a new COE category for 3,000cc cars for the rich to compete among themselves and not for them to compete against the middle-income groups in the 2,000cc COE category.
Others may argue that higher COE premiums could serve a common social good when the Government is seen to give higher public transport rebates to the lower-income groups.

The hidden trade-offs cannot be ascertained or determined easily in a dynamic economy with no capital gains tax or estate duty tax for the distribution of wealth, as it could cause the income gap between the rich and the poor to widen further.

Tan Kok Tim

 

[k1976]

https://sg.style.yahoo.com/money-no...an-rapper-drakes-diss-new-song-081655089.html

Even Rapper also know...people in SG is Jin xia stay.. money always not enough de

 

[k1976]

https://sg.style.yahoo.com/how-much...alking-about-money-no-enough-3-111912930.html

Mark Lee give an interesting comment

 

[k1976]

https://www.straitstimes.com/busine...r-foreign-currencies-by-mid-2024-analysts-say

Sit tight...more huat big big coming our way 2024

 

[k1976]

https://www.google.com/amp/s/oilpri...ets-As-Israel-Goes-To-War-With-Hamas.amp.html


Oil prices huat big big woh

 

[k1976]

https://www.google.com/amp/s/oilpri...-LNG-Workers-Prepare-To-Strike-Again.amp.html

LNG price also huat big big woh

 

[k1976]

All these are huat big big lobangs for the savvy bros...Heng Ong Huat lah

 

[LITTLEREDDOT]

Records set in three COE categories, Open category COE soars to $158,004​

The COE for larger cars with engines above 1,600cc or 130bhp, and electric vehicles above 110kW, ended at $150,001. ST PHOTO: RYAN CHIONG

Lee Nian Tjoe
Senior Transport Correspondent

Oct 18, 2023

SINGAPORE - Certificate of entitlement (COE) premiums reached new highs for the two car categories and the Open category at the latest tender exercise on Wednesday.
The COE for larger cars with engines above 1,600cc or 130bhp, and electric vehicles (EVs) above 110kW, ended at $150,001. This marks a 2.74 per cent increase over $146,002 posted at the previous tender.
The premium for the Open Category – which can be used for any vehicle type except motorcycles, but ends up being used mostly for bigger cars – ended at $158,004, up 3.95 per cent over the $152,000 record set at the previous tender.
This is the sixth consecutive time that records were broken for both the large car and Open COE categories.
The COE premium for smaller cars and EVs climbed 1.92 per cent to $106,000 from $104,000 set two weeks ago. The previous record of $105,000 was set just two tender exercises ago, in September.
Commercial vehicle COE premium ended at $84,790, 1.29 per cent below the $85,900 from two weeks ago. This was the only COE category that did not increase.
Motorcycle COE premium was up 3.18 per cent to end at $11,201 from $10,856.

This was the last tender exercise before the next three-month quota period from November to January, where the COE supply will increase by 12.9 per cent.

 

[LITTLEREDDOT]

Forum: High cost of living creates a dent in dream of pursuing one’s passions​

Oct 23, 2023

In Singapore, prosperity and progress have long been lauded and are key tenets of our society.
Once obsessed with the 5Cs _ cash, car, credit card, condominium, and country club membership _ have we now moved away from the era of unbridled materialism? A growing minority champion a departure from this consumer-driven dream, yet the majority still find themselves tethered to the pursuit of high-paying mainstream careers.
The relentless surge in the cost of living is a key disincentive to Singaporeans exploring their passions and interests outside of convention when deciding on life choices. I’ve seen friends opting for gap years or venturing into entrepreneurship, seeking to fulfil their passions. However, the harsh reality is that these non-mainstream career choices often involve arduous work and may come with lower salaries than those of white-collar professions.
More often than not, reality comes knocking, and the high cost of living in Singapore emerges as a formidable adversary. The dream of pursuing one’s passions frequently loses out to the necessity of securing a stable pay cheque. Singaporeans who choose alternative career paths are justified in harbouring some materialistic aspirations. There should not be a dilemma about making trade-offs between enjoying a comfortable quality of life and pursuing other career paths that may align with their passions and interests. Those opting for alternative careers simply desire to live comfortably, indulge in the occasional treat, and not have to worry about financial stability.
The Government’s emphasis on hard work yielding the fruits of our labour was a truism in past generations. I have older family members who, despite lacking a university degree, were able to purchase a three-bedroom condominium in their early 30s. Can the same be said for non-graduate Singaporeans today? The economic landscape has changed drastically, and even graduates today find themselves grappling with the challenge of acquiring a resale HDB flat.
While it’s true that salaries are on the rise, particularly in high-end jobs, the growth is sluggish for blue-collar workers and non-graduates. The economic pie must be more evenly distributed, allowing every segment of society to enjoy the prosperity that Singapore has worked so hard to achieve.
The Government must take measures to alleviate the burden of the high cost of living, ensuring that the dreams and aspirations of every Singaporean, regardless of their passions, interests or educational background, have room to flourish.

Ryan Ang

 

[LITTLEREDDOT]

Real median income in Singapore falls 4.5% in first half of 2023 due to inflation, weaker outlook​

The drop in real incomes was felt by workers across different job sectors, as inflation outpaced wage increases. ST PHOTO: KUA CHEE SIONG

Joanna Seow
Assistant Business Editor


NOVEMBER 7, 2023 AT 11:22 PM

SINGAPORE – Real median income in Singapore fell 4.5 per cent in the first half of 2023, compared with the same period in 2022, based on preliminary estimates.
This was due to elevated inflation and a weaker economic outlook, Senior Minister of State for Manpower Zaqy Mohamad told Parliament on Tuesday.
He added that the drop in real incomes was felt by workers across different job sectors, as inflation outpaced wage increases.
Nominal median income, which is not adjusted for inflation, still grew, by an estimated 0.9 per cent year on year over the first half of 2023, said Mr Zaqy.
He was responding to questions from Mr Edward Chia (Holland-Bukit Timah GRC) and Mr Saktiandi Supaat (Bishan-Toa Payoh GRC) on the impact of price increases on income growth for Singapore workers, especially those who are more financially vulnerable.
The income figures are for Singaporeans and permanent residents in full-time work. They had enjoyed wage gains over the last five years, with real median income growing by about 9.4 per cent from 2017 to 2022, or 1.8 per cent per year, said Mr Zaqy.
Workers at the 20th income percentile saw real incomes grow faster than those at the median, with an increase of 2.9 per cent per year from 2017 to 2022, he added.


Productivity also grew, at a rate of 2 per cent per year over the same period. This measures the rise in real value-added per worker.
On an annual basis, gross domestic product growth slowed to 0.5 per cent in the first half of 2023, from 2.1 per cent in the fourth quarter of 2022.
OCBC Bank chief economist Selena Ling said weaker economic growth generally means demand for some goods and services has fallen, and affected companies would feel the impact on their bottom lines.


If it is sustained, firms may take cost-cutting measures, which could impact pay increments and bonuses, for instance.
Comparable half-year figures are not available, but median income last fell on an annual basis in 2020 owing to the Covid-19 pandemic. In that case, nominal median income declined by 0.6 per cent, compared with 2019, while real median income declined by 0.4 per cent, according to Ministry of Manpower data.
Looking ahead, Mr Zaqy noted that inflation is expected to moderate over the rest of 2023. “That means, hopefully, the situation with the declines in real incomes potentially moderates,” he said.
In 2024, however, nominal wage growth for resident workers is expected to ease overall as labour demand cools, said Mr Zaqy.
But it could remain elevated in several sectors, he added.
“Wage increments are expected to stay firm in travel-related sectors where demand continues to recover, as well as more labour-intensive services sectors where manpower shortages could be more persistent,” he said.


Human resource consultancy ECA International on Tuesday said it expects real wage growth here to rebound in 2024. It forecast that salaries will grow by 0.5 per cent in real terms, and 4 per cent in nominal terms without taking into account inflation.
Meanwhile, about two-thirds of employers in a July poll reported that they plan to increase wages over the next 12 months, with an average rise of 6 per cent. This was according to a survey of 282 businesses conducted by the Singapore Business Federation.
Still, Ms Ling said that given the uncertain growth outlook in 2024 – complicated by wars and the expected slowdown due to a high-for-longer interest rate environment – it is possible that the domestic labour market will cool further.
“So while inflation is expected to moderate, wage growth may cool even more if business confidence softens further,” she said.
The Monetary Authority of Singapore said in October that economic growth is expected to pick up pace in 2024, while inflation eases.
To help workers cope with rising costs of living, the National Wages Council recently called on employers to consider giving a one-off special lump sum payment to workers.
The Government also announced in September additional cash payouts for eligible Singaporeans, as part of a $1.1 billion Cost-of-Living Support Package.

Mr Zaqy added that support for middle-income and lower-middle income workers comes through helping them upskill and reskill to take on new jobs and join growth sectors, where there is high productivity and better wage growth outcomes.
For lower-income workers, there is already the Progressive Wage Model in several sectors, which sets out increases in minimum pay that are tied to training and productivity improvements.
Mr Zaqy stressed that it is important for companies to transform and redesign jobs, “otherwise wage increases without corresponding productivity growth will be challenging, not just for the businesses, for our economy”.
He highlighted various government schemes in place, such as the industry transformation maps to guide firms and workers in adapting to new types of jobs; career conversion programmes which support workers who are reskilling to move into new roles; and the Progressive Wage Credit Scheme, which co-funds up to 75 per cent of wage increases given by employers to eligible lower-wage workers from 2022 to 2026.
Upcoming changes that have been announced at a broad level also include better job matching and career planning help for Singaporeans, and enhancements to the Workfare Income Supplement Scheme to boost the income of lower-wage workers.

 

[LITTLEREDDOT]

Singapore maintains spot as world’s most expensive city, tied with Zurich: EIU​

Vivienne Tay​

Thu, Nov 30, 2023

Singapore continues to observe high price levels across several categories, such as transport.

SINGAPORE maintained its spot as the most expensive city in the world, tying with Zurich, an annual survey showed on Thursday (Nov 30).
The pair overtook New York, which tied with Singapore last year for the pole position, based on findings from Economist Intelligence Unit’s (EIU) cost-of-living survey.
The survey, designed to help organisations calculate cost-of-living allowances and build compensation packages for expatriates and business travellers, showed that the global cost-of-living crisis is not over despite inflation moderating.

On average, prices rose by 7.4 per cent yearly in local currency terms. Although price growth slowed from the 8.1 per cent reported in the same period last year, it remains significantly above the 2017 to 2021 trend.
The Republic continued to observe high price levels across several categories, notably transport due to strict controls on car numbers.
“It is also among the most expensive cities for clothing, groceries and alcohol, due to its success as a premier location for business investment,” EIU noted.

Zurich’s rise, meanwhile, reflects the strength of the Swiss franc. The city also has high prices for groceries, household goods and recreation.
“The supply-side shocks that drove price increases in 2021 to 2022 have reduced since China lifted its Covid-19 restrictions in late 2022, while the spike in energy prices seen after Russia invaded Ukraine in February 2022 has also eased,” said Upasana Dutt, head of worldwide cost of living at EIU.
She noted that Asia continues to have relatively low price increases on average, with four Chinese and two Japanese cities among the biggest movers down the ranking this year.
Despite upside risks, EIU expects inflation to decelerate further in 2024, as the lagged impact of interest-rate rises impacts economic activity and thus, consumer demand.
The 10 most expensive cities are Singapore and Zurich (tie), Geneva and New York (tie), Hong Kong, Los Angeles, Paris, Copenhagen, Tel Aviv and San Francisco.